By Paul A. Harris
Portland, Ore., Sept. 18 - Phosphorus HoldCo plc, the parent of England-based Phones 4U, priced a £205 million issue of 5.5-year senior PIK toggle notes (Caa2/CCC+) at 99 to yield 10¼% on Wednesday, according to a market source.
The yield came at the tight end of the 10¼% to 10½% yield talk. The reoffer price came on top of price talk.
The notes pay a 10% cash coupon. The coupon steps up by 75 basis points to 10¾% for PIK interest payments.
Goldman Sachs International was the physical bookrunner. Lloyds TSB was the joint bookrunner.
The deal was slightly upsized from £200 million.
The Newcastle-under-Lyme, England-based provider of mobile telephone connections and handsets plans to use the proceeds to fund a dividend.
| Issuer: | Phosphorus HoldCo plc and Phones 4U Finance plc
|
| Amount: | £205 million, increased from £200 million
|
| Maturity: | April 1, 2019
|
| Securities: | Senior PIK toggle notes
|
| Physical books: | Goldman Sachs International (bill and deliver)
|
| Joint books: | Lloyds TSB
|
| Cash coupon: | 10%
|
| PIK coupon: | 10¾%
|
| Price: | 99
|
| Yield: | 10¼%
|
| Spread: | 832 bps
|
| First call: | Callable in one year at 102
|
| Trade date: | Sept. 18
|
| Settlement date: | Sept. 25
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 10¼% to 10½% yield at 99
|
| Marketing: | Brief roadshow
|
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